Forward-Looking MD&A Disclosures and the Information Environment

• 成果类型: Article
• 署名作者: Muslu, Volkan; Radhakrishnan, Suresh; Subramanyam, K. R.; Lim, Dongkuk
• 署名单位: University of Houston System; University of Houston; University of Texas System; University of Texas Dallas; University of Southern California; Indian School of Business (ISB); Idaho State University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2014.1921
• 发表日期: 2015
• 页码: 931-948
• 关键词: disclosure; 10-K filings; forward looking

摘要

We use computer-intensive techniques to study the informational properties of forward-looking disclosures in the management discussion and analysis (MD&A) sections of 10-K filings made with the Securities and Exchange Commission. We find that firms make more forward-looking MD&A disclosures when their stock prices have lower informational efficiency, i.e., when their stock prices poorly reflect future earnings information. The greater levels of forward-looking MD&A disclosures help improve yet are unable to completely mitigate the lower informational efficiency of stock prices for such firms. These findings are stronger for operations-related forward-looking disclosures, disclosures that are made prior to 2000, and disclosures made by loss firms.